The CALM Method: The Consignment Auction Liquidation Marketing Method of Mass Product Distribution: The First Ten Years

This paper addresses the need for an assessment/summative evaluation regarding the CALM (The Consignment Auction Liquidation Marketing) Method of Mass Product Distribution. Originally developed and initiated in 1993, in response to the common need business organizations have for product liquidation outlets, this nontraditional form of distribution targets audiences contemplating the distribution of products, including manufacturers, wholesalers, retailers, and other entrepreneurs. The topic of distribution is considered to be one of four primary "marketing tools" referred to as the "marketing mix." In addition to distribution, the other three components of the marketing mix are product, price, and promotion. The mass distribution of products via consignment auction liquidation outlets may be viewed as an additional channel of distribution. However, mass consignment auction liquidation on a national basis has not been adequately assessed or evaluated. There is little published about this type of product distribution. The effectiveness of the CALM Method utilized on a national basis and covering a 10-year time span is presented. Effectiveness was largely assessed through statistical observations of the effect of various independent variables on the dependent variable, "auction outlet profitability." Independent variables include geographic location/region of each consignment auction outlet; population size of each consignment auction outlet's community; merchandise type; consignment term, etc. The CALM Method yields the opportunity for profitable liquidation of mass quantities of merchandise on a national basis. This assessment/summative evaluation yields the opportunity for insight regarding the method's actual effectiveness and adds to the limited amount of research found in this area of mass distribution. (C) 2007 by The Haworth Press, Inc. All rights reserved.